Letter from Eugene A. Gulledge, HUD, to Senator Len B. Jordan

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FEDERAL HOUSING ADMINISTRATION
ASSISTANT SECRETARY-COMMISSIONER
Honorable Len B. Jordan
United States Senate
~·iashington, D. C. 20510
Dear Senator Jordan:
WASHINGTON, O. C. 20411
NOV 111972
Secretary RDil!ney has asked me to reply to your letter of November 6,
1972, on behalf of Ifr. Rudy J. Hatcher of Belo Rorizonte, Brazil.
Tho federal government does not, at this tL~, administer any housing
programs under which there is a guaranteed income from each unit
constructed. Under Section 236 of the National Housing Act, assistance
will be provided for rental and cooperative housing for eligible low­and
moderate-income families, includin~ P-lderly families and single
elderly persons. This program provides for mortgage loans to be made
by private lenders to nonprofit, cooperative or limited profit mortgagors
at market rates of interest, as set by the Secretary of the Department.
Payments are made to the lender on behalf of eligible tenants to reduce
their rents to the level that would be required to support a mortgage
with an interest rate of one percent. The enclosed HrrD-FF~ publication,
Rent~l and Cooperative Rousing for Lower Income Familie~, provides a
guide for sponsors, builders and lenders interested in this program.
Rousing is also provided for elderly families under the Department's
public housing program. Under this program, mm assists a local
housing authority, the local government and private industry, by
providing financial and technical aid to make public housing available
to lower-income families, including the elderly. There are several
different systems used to provide public housing; these include the
conventional method, the turnkey method for new construction or for
rehabilitated used housing, and the Section 23 leased public housing
progt'all!. The enclosed brochure "The New Look in Public Rousing"
provides a general description of these methods and of the program
itself. I have also enclosed a preconstruction handbook and a construc­tion
guide to the public housing program, for Mr. Hatcher's information.
The enclosed leased housing and turnkey handbooks should also be
helpful to Mr. Rateher; however, hoth of these are in the process of
heing revised and more up-to-date editions of each will be available
in a few months.
Reproduced from the manuscript collections at Boise State University Library.
Len Jordan Collection MSS 006, Box 190, Folder 16.
This material may be protected by copyright law (Title 17 U.S. Code).
-2-
Mr. Hatcher's questions concerning how a developer qualifies to build
low-rent housing units, under t:be Yarious mJD progrUIS, should be
answered by the re~ective enclosed handbooks and guides which pertain
to each of the programs be is interested in.
I have alao enclosed an assortment of fact sheets and brochures which
generally deecribe both assisted and non-assisted programs administered
by the Department. Although BUD-PHA does have a program to aid the
home buying servicaman, there 18 no ltL'D progrlll!l to provide mlitary
faeilitiu as aucll. lh'. Hatcher !lilly want to direct his inquiry
regarding this llllltter to the Department of Defense. Likewise, there
are no HOD programa at the present time which aid in providing office
space or housing specifically for government employees.
The intent of the urban renewal progTam in the Northwest, as throughout
the country, is to ueist in the elilllination of sl\ll!UI and blight in
urban areas through surveys and planning, land acquisition and clearing,
rehabilitation of existing atrueturea, and the installation of public
improvements.
Eligible applieanta are local public agencies, such aa renewal agencies
or housing authorities, departments of government, and IDdian tribes.
Before aid can be given under this program, the local rovarning body
IBWit have enacted a reaolution approving the urban renewal projeet,
and the eGIIIIlJtUlity must have a certified Workable Program for Comanmity
Improvement. For further information on this prcmrtllll or any of the
programs previously discussed, eapecially u they apply to the Northwest
region of the United States, Mr. Hatcher should contact the HUD
Regional Offiee :1n Seattle., Waahinttton. The address is Areade Plaaa
Building, 1321 Second Avenue, Seattle, Washington 98101.
Enclosures
Sincerely,
~•n• 1. lnlledge
Eu~ene A. Gulledge
\
Reproduced from the manuscript collections at Boise State University Library.
Len Jordan Collection MSS 006, Box 190, Folder 16.
This material may be protected by copyright law (Title 17 U.S. Code).

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Full-text

DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
FEDERAL HOUSING ADMINISTRATION
ASSISTANT SECRETARY-COMMISSIONER
Honorable Len B. Jordan
United States Senate
~·iashington, D. C. 20510
Dear Senator Jordan:
WASHINGTON, O. C. 20411
NOV 111972
Secretary RDil!ney has asked me to reply to your letter of November 6,
1972, on behalf of Ifr. Rudy J. Hatcher of Belo Rorizonte, Brazil.
Tho federal government does not, at this tL~, administer any housing
programs under which there is a guaranteed income from each unit
constructed. Under Section 236 of the National Housing Act, assistance
will be provided for rental and cooperative housing for eligible low­and
moderate-income families, includin~ P-lderly families and single
elderly persons. This program provides for mortgage loans to be made
by private lenders to nonprofit, cooperative or limited profit mortgagors
at market rates of interest, as set by the Secretary of the Department.
Payments are made to the lender on behalf of eligible tenants to reduce
their rents to the level that would be required to support a mortgage
with an interest rate of one percent. The enclosed HrrD-FF~ publication,
Rent~l and Cooperative Rousing for Lower Income Familie~, provides a
guide for sponsors, builders and lenders interested in this program.
Rousing is also provided for elderly families under the Department's
public housing program. Under this program, mm assists a local
housing authority, the local government and private industry, by
providing financial and technical aid to make public housing available
to lower-income families, including the elderly. There are several
different systems used to provide public housing; these include the
conventional method, the turnkey method for new construction or for
rehabilitated used housing, and the Section 23 leased public housing
progt'all!. The enclosed brochure "The New Look in Public Rousing"
provides a general description of these methods and of the program
itself. I have also enclosed a preconstruction handbook and a construc­tion
guide to the public housing program, for Mr. Hatcher's information.
The enclosed leased housing and turnkey handbooks should also be
helpful to Mr. Rateher; however, hoth of these are in the process of
heing revised and more up-to-date editions of each will be available
in a few months.
Reproduced from the manuscript collections at Boise State University Library.
Len Jordan Collection MSS 006, Box 190, Folder 16.
This material may be protected by copyright law (Title 17 U.S. Code).
-2-
Mr. Hatcher's questions concerning how a developer qualifies to build
low-rent housing units, under t:be Yarious mJD progrUIS, should be
answered by the re~ective enclosed handbooks and guides which pertain
to each of the programs be is interested in.
I have alao enclosed an assortment of fact sheets and brochures which
generally deecribe both assisted and non-assisted programs administered
by the Department. Although BUD-PHA does have a program to aid the
home buying servicaman, there 18 no ltL'D progrlll!l to provide mlitary
faeilitiu as aucll. lh'. Hatcher !lilly want to direct his inquiry
regarding this llllltter to the Department of Defense. Likewise, there
are no HOD programa at the present time which aid in providing office
space or housing specifically for government employees.
The intent of the urban renewal progTam in the Northwest, as throughout
the country, is to ueist in the elilllination of sl\ll!UI and blight in
urban areas through surveys and planning, land acquisition and clearing,
rehabilitation of existing atrueturea, and the installation of public
improvements.
Eligible applieanta are local public agencies, such aa renewal agencies
or housing authorities, departments of government, and IDdian tribes.
Before aid can be given under this program, the local rovarning body
IBWit have enacted a reaolution approving the urban renewal projeet,
and the eGIIIIlJtUlity must have a certified Workable Program for Comanmity
Improvement. For further information on this prcmrtllll or any of the
programs previously discussed, eapecially u they apply to the Northwest
region of the United States, Mr. Hatcher should contact the HUD
Regional Offiee :1n Seattle., Waahinttton. The address is Areade Plaaa
Building, 1321 Second Avenue, Seattle, Washington 98101.
Enclosures
Sincerely,
~•n• 1. lnlledge
Eu~ene A. Gulledge
\
Reproduced from the manuscript collections at Boise State University Library.
Len Jordan Collection MSS 006, Box 190, Folder 16.
This material may be protected by copyright law (Title 17 U.S. Code).